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Coca-Cola Europacific Partners agrees to $1.8bn joint acquisition

20-Nov-2023 - Last updated on 20-Nov-2023 at 09:37 GMT

The deal would make CCEP the largest bottler of Coca-Cola in the world. Credit: CCEP

Coca-Cola Europacific Partners (CCEP) has announced that it has entered into a definitive agreement to jointly acquire Coca-Cola Beverages Philippines (CCBPI).

The Coca-Cola Company (KO), the current owner of CCBPI, has agreed to sell 100% of the business in a deal worth $1.8bn (£1.44bn).

The joint deal will be conducted together with CCEP’s Philippines-based partner Aboitiz Equity Ventures (AEV), with the firm’s splitting ownership 60:40. It was announced in August 2023 that CCEP had signalled its intent to acquire CCBPI in partnership with AEV, a process that the group confirmed was “on track” in a recent trading update.

Speaking at the time, CCEP chief executive Damian Gammell said that the team had been working closely with KO and AEV, and set out a vision of “driving sustainable and stronger growth through diversification and scale”.

The deal remains subject to regulatory approval, with the transaction expected to be completed by early 2024.

World’s largest bottler of Coca-Cola

Completion of the acquisition will position CCEP as the world’s largest bottler of Coca-Cola by both revenue and volume.

“The acquisition will build on CCEP’s successful expansion into Australia, Pacific & Indonesia (API) in 2021, further strengthening the partnership with its significant shareholder KO,” a statement from a CCEP spokesperson said.

“CCEP’s acquisition of CCBPI, with AEV, one of the leading conglomerates in the local market, offers a great opportunity to co-own an established, well-run business with attractive profitability and growth prospects.”

The group hopes that the deal will allow to create a “more diverse footprint” across its current API division, which has posted a 6% decline in revenue for 2023 to date.

“It will also provide the opportunity to leverage best practice and talent, including supporting Indonesia’s transformation journey,” the spokesperson added.

“It is therefore aligned with CCEP’s aim of driving sustainable and stronger growth through diversification and scale, and underpins the company’s mid-term strategic objectives.”

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